11, October 2013

USD/JPY (a 4-hour chart)

USD/JPY (a 4-hour chart)

General Overview

USD/JPY grew to 97.70 on the background of USD growth. The dollar rebounded from an eight-month low on Thursday on expectations of a break in the U.S. financial standoff.

USD/JPY rebounded sharply from the 200 DMA at 96.86, but no one knows whether the bullish momentum will be continued. The pair remains in a downtrend. The key support is at 95.83.

The pair broke through the cloud and reached the support level 96.90. Then the price jumped up slowing down its falling.

Kijun -Sen and Tenkan -Sen are crossed in a downward "dead cross " on a day chart. The Kijun -sen is moving horizontally, and the Tenkan -sen is directed down.

«MACD» is in the negative area, histogram bars atre under the signal line and falling.

Bollinger Bands indicates that the downward movement continues, the bands widen and a directed downwards.

Trading recommendations

The sell signal is cancelled for a while. The pair is being corrected. The break and the consolidation above the resistance level 98.00 - 98.10 will confirm a change of the trend,

The price broke 97.90 and is targeted to 98.25.